Education, health to take 28% of ADP

The government may allocate Tk 83,557 crore for development works in the education and health sectors in the fiscal year 2026-27, accounting for more than one-fourth of the proposed Annual Development Programme (ADP).

The Planning Division placed the proposal yesterday at a meeting to finalise the ADP for FY27, chaired by Finance Minister Amir Khosru Mahmud Chowdhury.

Allocation and implementation of ADP in the two major sectors were almost stagnant at low levels in recent years.

In line with the BNP’s election manifesto, the government intends to gradually raise spending in both sectors to 5 percent of GDP each.

For the upcoming fiscal year, the combined allocation for education and health is nearly double the original budget allocation for the current fiscal year and about four times the revised budget.

In the current fiscal year, the combined allocation for health and education stood at Tk 45,822 crore, which was later revised down to Tk 21,873 crore.

According to the Planning Division’s proposal, the total ADP for FY27 is set to rise to Tk 3 lakh crore, up 50 percent from the revised ADP of Tk 2 lakh crore for the current fiscal year.

Of the total ADP allocation for FY27, the government will finance Tk 1.9 lakh crore, while Tk 1.1 lakh crore is expected to come from development partners.

The ADP will be finalised at a National Economic Council meeting on May 18, to be presided over by Prime Minister Tarique Rahman. Before that, planning and finance ministry officials will meet again on May 16 to refine the draft.

At yesterday’s meeting, the Planning Division was directed to submit a proposal benchmarking allocations against GDP, according to planning ministry officials. It was also directed to assess whether projects are aligned with the BNP’s election manifesto.

This year, a structural change has been introduced by allocating a higher share of funds to new projects. For instance, Tk 1.07 lakh crore has been set aside for unapproved projects and programmes, of which Tk 17,000 crore is designated for social development covering special needs.

Planning ministry officials said the allocation covers spending on family cards, farmer cards, tree plantation, canal digging, and monthly honoraria and festival allowances for religious leaders of different faiths.

For ongoing projects, Tk 1.92 lakh crore may be allocated under the ADP. The government has also decided to review around 1,300 ongoing projects to determine whether they remain necessary, with those found redundant to be removed from the ADP.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, described the project review initiative as positive but said the focus should remain on improving managerial efficiency, implementation quality, and institutional oversight -- particularly strengthening the Implementation Monitoring and Evaluation Division (IMED).

He also cautioned that project success should not be measured solely by the amount of money spent, saying emphasis should be placed on whether projects are delivering intended outcomes and ensuring value for public resources.

Rahman warned that expanding the ADP by 50 percent without improving institutional capacity and governance risked falling short of expectations, adding that increasing allocations without reforms in implementation, procurement, and monitoring may fail to deliver expected returns from public investment.

The finance minister said at yesterday’s meeting that a major reform would be brought to the Planning Commission to improve project formulation and implementation. The government will also revise the project director selection policy, as project directors are central to implementation.

In the health sector, the government may allocate Tk 35,252 crore, against an original budget allocation of Tk 17,519 crore this year, revised down to Tk 4,412 crore.

In the education sector, the proposed allocation is Tk 48,305 crore, against an original Tk 28,303 crore, revised to Tk 17,391 crore.

The government may allocate Tk 36,128 crore to the Local Government Division, Tk 31,064 crore to Roads and Highways, and Tk 17,315 crore to the Science and Technology Ministry. In the Power Division, the proposed allocation is Tk 19,285 crore, with Tk 8,000 crore set aside for state-owned enterprises.